Warner Bros. Discovery (NASDAQ:WBD) Cut to “Underperform” at Wolfe Research

Wolfe Research downgraded shares of Warner Bros. Discovery (NASDAQ:WBD) from a peer perform rating to an underperform rating in a report issued on Tuesday morning, MarketBeat.com reports. Wolfe Research currently has $7.00 target price on the stock.

Other research analysts have also issued reports about the company. JPMorgan Chase & Co. decreased their price objective on Warner Bros. Discovery from $13.00 to $10.00 and set a neutral rating on the stock in a research report on Monday, February 26th. Redburn Atlantic cut Warner Bros. Discovery from a buy rating to a neutral rating and set a $11.00 target price for the company. in a research note on Thursday, January 11th. Benchmark reissued a buy rating and issued a $20.00 target price on shares of Warner Bros. Discovery in a research note on Monday, March 4th. Morgan Stanley lowered their target price on Warner Bros. Discovery from $14.00 to $10.00 and set an equal weight rating for the company in a research note on Monday, February 26th. Finally, Macquarie lowered their target price on Warner Bros. Discovery from $16.00 to $14.00 and set an outperform rating for the company in a research note on Monday, January 22nd. One analyst has rated the stock with a sell rating, seven have issued a hold rating and ten have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of Moderate Buy and a consensus price target of $13.83.

Warner Bros. Discovery Trading Down 1.1 %

WBD stock opened at $8.29 on Tuesday. The business has a fifty day moving average price of $8.69 and a 200 day moving average price of $10.01. Warner Bros. Discovery has a fifty-two week low of $8.02 and a fifty-two week high of $14.76. The stock has a market capitalization of $20.23 billion, a price-to-earnings ratio of -6.47 and a beta of 1.51. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.93 and a quick ratio of 0.93.

Warner Bros. Discovery (NASDAQ:WBD) last released its quarterly earnings results on Friday, February 23rd. The company reported ($0.16) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.05). Warner Bros. Discovery had a negative net margin of 7.57% and a negative return on equity of 3.48%. The business had revenue of $10.28 billion for the quarter, compared to analyst estimates of $10.34 billion. During the same period in the prior year, the business earned $0.42 earnings per share. The company’s revenue for the quarter was down 6.6% on a year-over-year basis. Analysts expect that Warner Bros. Discovery will post -0.35 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Invesco Ltd. grew its stake in Warner Bros. Discovery by 16.6% in the third quarter. Invesco Ltd. now owns 28,184,613 shares of the company’s stock valued at $306,085,000 after acquiring an additional 4,016,888 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in shares of Warner Bros. Discovery by 17.0% in the fourth quarter. The Manufacturers Life Insurance Company now owns 25,534,218 shares of the company’s stock valued at $290,579,000 after purchasing an additional 3,710,343 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Warner Bros. Discovery by 12.1% in the third quarter. The Manufacturers Life Insurance Company now owns 21,823,875 shares of the company’s stock valued at $237,007,000 after purchasing an additional 2,356,665 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of Warner Bros. Discovery by 2.6% in the third quarter. Northern Trust Corp now owns 20,873,998 shares of the company’s stock valued at $226,692,000 after purchasing an additional 524,965 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Warner Bros. Discovery in the fourth quarter valued at about $198,916,000. 59.95% of the stock is owned by institutional investors and hedge funds.

Warner Bros. Discovery Company Profile

Warner Bros. Discovery, Inc operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming.